MVD is a very nice place. Laid back as compared to BA. Feels relatively prosperous. If you're there early in 2002, half of upper class BA/Argentina takes vacation at Punta del Este which is quite the scene (and quite not-the-scene off season--really stark and deserted).
Radisson downtown MVD is quite nice. Check Radisson website for some deals. There was to be a Sheraton (?) opening there but DK the progress.
The Mercado area is very pleasant--lots of meat roasting on spits.
About a 1 1/2 hour drive from MVD to Punta.
JL